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XCEL Solutions 2024 Questions and Answers Scored A+
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Exam of 6 pages for the course Xcel solution at Xcel solution (XCEL Solutions 2024)
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XCEL Solutions 2024a nonparticipating company is sometimes called a - answer stock insurer
Fraternal Benefit Society has each other the following characteristics except - answer
exist for profit
The Fair Credit and Reporting Act's main purpose is to - answer protect consumers with
guidelines regarding credit reporting and distribution
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the - answer reinsurer
What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - answer participating life insurance policy
What is considered to be the primary reason for buying life insurance? - answer provide
death benefits
An insurer's ability to make unpredictable payouts to policyowners is called -
answerliquidity
The Do Not Call Registry offers exemptions for calls placed from all of the following
except - answerinsurance sales calls
Why are dividends from a mutual insurer not subject to taxation? - answerBecause
dividends are considered to be a return of premium
An insurer's claim settlement practices are regulated by the - answerState Insurance
Departments
All of the following are examples of pure risk EXCEPT - answerlosing money at a casino
Which of the following is considered to be an event or condition that increases the
probability of an insured's loss? - answerHazard
An individual who removes the risk of losing money in the stock market by never
purchasing stocks is said to be engaging in - answerRisk avoidance
The cause of a loss is referred to as - answerperil
Insurance represents the process of risk - answertransference
, What is known as the immediate specific event causing loss and giving rise to risk -
answerPeril
An example of risk sharing would be - answerDoctors pooling their money to cover
malpractice exposures
Insurance companies determine risk exposure by which of the following? - answerLaw
of large numbers and risk pooling
How do insurers predict the increase of individual risks? - answerlaw of large numbers
People with higher loss exposure have the tendency to purchase insurance more often
than those at average risk. This is called - answerAdverse selection
Who is responsible for assembling the policy forms for insureds? - answerInsurance
carriers
The authority granted to a licensed producer is provided via the - answerLaw of Agency
What makes an insurance policy a unilateral contract? - answerOnly the insurer is
legally bound
All of the following are elements of an insurance policy EXCEPT - answerclaim forms
Insurable interest does NOT occur in which of the following relationships? -
answerbusiness owner and business client
A professional liability for which producers can be sued for mistakes of putting a policy
into effect is called - answerErrors and omissions
According to the principle of Utmost Good Faith, the insured will answer questions on
the application to the best of their knowledge and pay the required premium, while the
insurer will deal fairly with the insured and its - answerPromises made
Which of the following is an example of the insured's consideration? - answerA paid
premium
Which of the following is present when an applicant stands to lose value if the insured
dies? - answerInsurable interest
In an insurance contract, the element that shows each party is giving something of
value is called - answerconsideration
when the principal gives the agent authority in writing, its referred to as - answerexpress
authority
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